The company's move to halt operations at the ElDorado National facility is viewed as a strategy for focused growth, consistent cash inflow, and better margin performance. The Seeking Alpha Quant Rating on REVG is Buy, suggesting a positive stock outlook.
The company's strategic shift to optimize profitability and shareholder returns is reflected in the decision to wind down ENC and sell Collins Bus Corp. The special dividend and reorganization could potentially make the stock more attractive.
Concerns arise over the declining trend of REV Group's ROCE and shrinking capital base. The 8.6% ROCE is unappealing, and increased liabilities pose new risks. Despite impressive stock performance, underlying trends need to improve for sustained optimism.